Compared to last May, home prices rose 6.6 percent in May 2017 year-to-year. Prices also showed an increase of 1.2 percent from April 2017.
As home prices continue to rise, CoreLogic’s recently-released Home Price Index predicts that home prices will increase 5.3 percent by May 2018, and 0.9 percent from May to June 2017.
“The market remained robust with home sales and prices continuing to increase steadily in May. While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets. This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1 percent on a year-over-year basis in May of this year compared with May of last year. Rents in the affordable single-family rental segment, defined as properties with rents less than 75 percent of the regional median rent, increased 4.7 percent over the same time, well above the pace of overall inflation,” said Frank Nothaft, the chief economist at CoreLogic.
In Pennsylvania, home prices increased 3.7 percent in May 2017, compared to last May, while they increased 1.6 percent from April to May 2017. CoreLogic predicts they will increase 5.1 percent by May 2018, and 1 percent in June 2017. Across the country, Utah and Washington saw the highest increases in home prices in May.
“For current homeowners, the strong run-up in prices has boosted home equity, and in some cases, spending. For renters and potential first-time homebuyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets,” said CoreLogic President and CEO Frank Martell.